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FIRSTRAND LIMITED - Cautionary relating to the repurchase of Firstrands B variable rate non-cumulative non-redeemable preference shares

Release Date: 02/03/2022 07:05
Code(s): FSR FSRP     PDF:  
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Cautionary relating to the repurchase of Firstrand’s B variable rate non-cumulative non-redeemable preference shares

(Incorporated in the Republic of South Africa)
(Registration number: 1966/010753/06)
JSE ordinary share code: FSR; ISIN code: ZAE000066304
JSE B preference share code: FSRP; ISIN code: ZAE000060141
NSX ordinary share code: FST
LEI: 529900XYOP8CUZU7R671
(FirstRand or the group)


FirstRand shareholders are advised that the group is considering making an offer to all holders of FirstRand’s
B variable rate non-cumulative non-redeemable preference shares (the preference shares) to repurchase the
preference shares, subject to the relevant shareholder and regulatory approvals.

Following the implementation of the Basel III framework and the phasing out of these preference shares over a
ten-year period, these instruments no longer qualify as regulatory capital (since 1 January 2022). It is FirstRand’s
view that the preference shares are also unlikely to qualify as first loss after capital (flac) instruments once current
proposals have been incorporated into prudential standards. The repurchase will exclude these preference shares
from the group’s issued share capital.

The group’s intention is to repurchase at par value which translates into R100 per preference share. This is a
12.8% premium to the 30-day volume weighted average price of R88.63 per preference share.

The repurchase may have a material effect on the price of the preference shares so holders are advised to exercise
caution when dealing in the preference shares until a further announcement is made.

The FirstRand board of directors collectively and individually accept responsibility for the information contained in
this announcement and certify that, to the best of their knowledge and belief, the information contained in this
announcement relating to FirstRand is true and this announcement does not omit anything that is likely to affect
the importance of such information.

2 March 2022

RAND MERCHANT BANK (a division of FirstRand Bank Limited)

Date: 02-03-2022 07:05:00
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